The fund will focus primarily on development of mid -income residential projects in Mumbai, Delhi NCR, and Bangalore and may also consider opportunities in Pune and Chennai.

"The platform will enable Godrej Properties to capture outright land purchase transactions in the present dislocated market conditions without deviating from its asset light model and is expected to generate substantial earnings over the next seven years, which will contribute significantly to the company's growth," a company statement said.

Shares of the company had plunged to 52-week low of Rs 519 on the BSE yesterday.